- The MacArthur Foundation’s report on the findings of its, How Housing Matters Survey – reveals a lasting perception that the Housing Crisis persists.
- NYU Furhman Center released the third in a five part series of policy briefs on affordable housing. The Challenge of Rising Rents: Exploring Whether a New Tax Benefit Could Help Keep Unsibsidized Rental Units Affordable offers a policy option to maintain a stock of unsubsidized affordable apartments in New York City.
- The Urban Center released: Headship and Home-ownership: What Does the Future Hold in which it explores the desire and ability of young Americans to become homeowners of the future; it also discusses whether the average home-ownership rate will go up or down in coming decades.
Author Archives: Serenna McCloud
Tuesday’s Regulatory & Legislative Round-Up
- The Consumer Financial Protection Bureau issued a consumer advisory in the first regulatory action prompted by the results of its reverse mortgage report entitled A Closer Look at Reverse Mortgages. Advertisements often lead retirees to believe that reverse loan offers are part of a government program, do not involve interest and fees and fail to mention or prominently display important details regarding these terms.
- The U.S. Department of Housing and Urban Development (HUD) is seeking comment regarding an expansion of the housing options for Housing Choice Voucher Families. In many regions the rental subsidy is not sufficient to allow renters to live in lower poverty neighborhoods.
- HUD also launched a new website for training housing counseling agencies, with an eye toward improving customer service and counseling skills.
Thursday’s Advocacy & Think Tank Round-Up
- National Association of Realtors reports April Pending home sales, up 1.3% – the strongest in 9 years.
- A joint study by the NYU Furman Center and Capital One Renting in America’s Largest Cities: National Affordable Rental Housing Landscape reveals a trend in all 11 of the largest metro areas in the U.S., which the study focused on, of rent increases outpacing inflation, tending to not keep up with the increase in number of renters and an increase in severely rent burdened low income renters.
- Zillow’s recent research concludes that the rent affordability crisis leads to lower homeownership rates because renters cannot afford to save for a downpayment in high rent metros like Los Angeles.
Tuesday’s Regulatory & Legislative Update
- Mayor Bill De Blasio’s new 10 year plan for New York City Housing Authority (NYCHA), entitled NexGeneration NYCHA, focuses on four goals to transform NYCHA: short-term financial stability and diversifying long-term funding; increased operational efficiency; rebuilding, expanding, and preserving the city’s public and affordable housing stock; and engaging residents in improved social services.
- Representatives in the House ( Turner – R Ohio & Fattah – D Penn.) join forces in a bi-partisan effort to urge Congress to reauthorize New Market Tax Credits (NMTC), which expired in 2014 (their letter here). The NMTC was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. The NMTC Program attracts investment capital to low-income communities by permitting individual and corporate investors to receive a tax credit against their Federal income tax return in exchange for making equity investments in specialized financial institutions called Community Development Entities (CDEs). Legislation to permanently extend the NMTC is pending in both the House (H.R. 855) and Senate (S. 591).
Friday’s Government Reports
- According to the Commerce Department sales of new single-family houses in April 2015 were at a seasonally adjusted annual rate of 517,000 which is a 26% increase over last April and a 6.8% increase since March.
- The Federal Housing Finance Authority’s (FHFA) House Price Index for April 2015 shows a 1.3% increase nationwide.The top five states in annual appreciation: 1) Colorado – 11.2 percent 2) Nevada – 10.1 percent 3) Florida – 8.7 percent 4) Washington – 7.6 percent 5) California – 7.5 percent. Increases were greatest in Oakland-Hayward-Berkeley, CA (MSAD), where prices increased by 13.4 percent. Prices were weakest in the Greensboro-High Point, NC, where they fell 2.3 percent.
- The FHFA’s monthly interest rate survey finds that April’s average mortgage interest rate of 3.78% represents a decrease of 2 basis points since March.
- The Federal Reserve Bank of New York recently released its Survey of Consumer Expectations (SCE) – Housing Survey 2015 in which it reports a finding that, “households remain broadly optimistic about housing market” and that “most renters want to own.”
Thursday’s Advocacy & Think Tank Round-Up
- National Association of Realtors announced that its REALTORS® Confidence Index – Six-month Outlook remains strong for the third month in a row, the index rose above 50 for all property types. An index greater than 50 indicates that the number of respondents with “strong” outlook outnumbered those with “weak” outlook. In the single family market, the confidence rose to 76 (75 in March 2015; 68 in April 2014). The index for townhomes rose to 58 (56 in March 2015; 49 in April 2014), while the index for condominiums increased to 52 (51 in March 2015; 46 in April 2014).
Tuesday’s Regulatory & Legislative Round-Up
- Consumer Financial Protection Bureau Director, Richard Cordray’s, prepared remarks before the National Association of Realtors.
- The Department of Housing and Urban Development is seeking public comment regarding proposed revisions to the language of the HUD Addendum to Uniform Residential Loan Application, also known as the 92900-A, the loan certification document signed by lenders. HUD is providing a 60-day comment period on proposed revisions to the form and is requesting all public comments be received by July 14, 2015.
- The Senate Banking Committee passed The Financial Regulatory Improvement Act of 2015, which would roll back provisions of Dodd-Frank, which was passed in 2010 to remedy the issues which led to the Great Recession (AKA Global Financial Crisis). The bill has many provisions which provide relief to community banks and credit unions, and also many provisions relating to mortgage finance. The Bill still has to be considered by the wider Senate, where it will face significant challenges, along party lines.
- The American Bankers Association has issued a statement in support of The Financial Regulatory Improvement Act of 2015.
- Americans for Financial Freedom has issued a statement in opposition to The Financial Regulatory Improvement Act of 2015.
